Orleans DA opens investigation into allegations of embezzlement by charter school operator

[ad_1]

Orleans Parish District Attorney Jason Williams is launching a special investigation into the Dryads YMCA, the nonprofit that runs the James M. Singleton Charter School, after parish school board officials d’Orléans wrote to him to report allegations of embezzlement of school funds totaling more than $ 1 million.

The YMCA operates Singleton School from its Central City facility, and the organization and the district have been at odds for over a year over academic, financial and operational issues. These issues include allegedly embezzled funds, which a financial audit indicated the organization owes to the school, and allegedly bogus background checks that allowed an employee with a criminal record to work at the school. This culminated in the arrest in June of the Dryads’ former financial director, Catrina Reed. Reed was quickly released from prison without a cash bond. Williams has yet to file formal charges against Reed. And he did not address his case at his Thursday press conference announcing the Singleton inquiry.

NOLA Public Schools District Superintendent Henderson Lewis Jr. and OPSB President Ethan Ashley wrote to Williams and the state legislative auditor on Monday, advising them of a series of allegedly embezzled public funds or poorly managed and unsuccessful attempts by the district to find out more about the problems during the last several months.

“They detailed the allegations that the Dryads YMCA… embezzled school funds of over $ 1 million over the course of several years,” said Williams.

“As with any case that comes to my office alleging illegal activity or corruption, especially actions that harm the most vulnerable in our community, our children. My office will vigorously investigate this matter, ”he said. “We will issue subpoenas very quickly for additional information and use all other law enforcement tools available to make sure we have access to all the information … to support a full investigation and get to the bottom of this. case.”

This is another tumultuous stage in a months-long latent battle that began when the district began cracking down on the school with a series of written warnings, and announced in June that it planned to revoke the school charter. The Dryads YMCA took legal action to prevent the school from closing and obtained a restraining order that allowed the school to open as planned in August.

The district warned the school about the allegedly embezzled money this summer and said it needed more responses from the YMCA. At the time, YMCA officials said their financial contractors should investigate. District officials claim they did not receive this report.

The district, meanwhile, appears to be using the Dryad trial as a tool to find some of the answers. As part of the lawsuit, the district is currently seeking approval from Orléans Parish Civil Court Judge Jennifer Medley for subpoenas for the cases of three of the YMCA’s financial entrepreneurs. After the filing of this motion, the YMCA filed a motion to dismiss. In response, the school district filed a motion opposing the request earlier this week. The two parties are scheduled to meet in court on Friday over the subpoenas.

Singleton is in the final year of its charter and has failed to meet standards for a new contract. This has sent the school into the full district review process, which will wrap up in the coming weeks. Lewis is expected to announce whether the school will remain open or closed at the November board meeting.

Singleton is unusual among New Orleans charter schools in that it is run by an organization that also offers other programs and services. For years, the Dryads YMCA operated Singleton under its financial aegis, but last summer, district officials asked them to split up and create a separate education committee to which the school would report. He is also not housed in a district-owned building, which means that if OPSB revokes its charter, he cannot take back the campus.

When asked if his office was investigating the organization before receiving the communication from OPSB officials, Williams said he was aware of the news regarding the school, but that the district’s dismissal this week offered new information.

“This was the first time we learned that there may be criminal activity in regards to the embezzlement of over $ 1 million,” Williams said.

First Deputy District Attorney Bob White will lead the investigation. Williams said he had a background in finance.

“It is clear that it is tailor-made to conduct an investigation like this,” he said.

White spoke briefly after Williams. He called the allegations “very serious”.

“Anyone involved will face felony charges based on the amount of money that was allegedly embezzled,” White said.

Related

[ad_2]